The Special Unit manages the United Nations Fund for South-South Cooperation (UNFSSC), which is included in the annual UN Pledging Conference for Development Activities. The Fund was designated by the General Assembly in its resolution 60/212 of 22 December 2005 “as the main United Nations trust fund for promoting and supporting South-South and triangular cooperation”.  Since the establishment of the Fund, the following countries, foundations, funds and UN agencies have made contributions in various forms through the Special Unit: Algeria, Antigua and Barbados, Argentina, Azerbaijan, Bangladesh, Benin, Brazil, Cameroon, China, Comoros, Egypt, Ford Foundation, Ghana, GTZ, ILO, India, Iran (Islamic Republic of), Ireland, Jamaica, Kenya, Lebanon, Madagascar, Mexico, Morocco, Nigeria, Norway, OFID, Qatar, Republic of Korea, Samoa, South Africa, Suriname, Trinidad and Tobago, Tuvalu, United Arab Emirates, United Nations Fund, United Republic of Tanzania, and Venezuela (Bolivarian Republic of). Contributions can be open or earmarked for specific South-South and triangular cooperation initiatives agreed upon between a contributing country or donor entity and the Special Unit.

Contributions received since the inception of the Fund total approximately $17.3 million, with around $3.6 million received in 2010.

See template for Contribution to Open Trust Fund

When a programme-country government or another partner (also called a third party), such as a donor government, contributes resources to specific programmes or projects, the arrangement is known as cost-sharing. The income generated through cost-sharing forms part of the other resources of the Special Unit. To date, the largest donor for SSC is Japan which, under the Japan Human Resources Development Fund (JHRDF) (a cost-sharing arrangement between UNDP and the Government of Japan), has shown deep a interest in promoting SSC. A decision was taken by the Government of Japan to replace the JHRDF with the UNDP-Japan Partnership Fund (currently the Japan-UNDP Partnership Fund) in 2003. In addition to Japan, more partners began to use the cost-sharing arrangement in support to South-South and triangular cooperation initiatives either as contributions to specific projects or through UNFSSC (e.g., the Government of South Africa to TECHNONET Africa, the OPEC Fund to SS-GATE, and Suriname to the oil/gas management initiative).

In 2010, the Republic of Korea signed an agreement with the Special Unit to finance the Facility/Programme for Capacity Development for Poverty Reduction through South-South and triangular cooperation. The objective of this programme is to share the development experience and know-how of the Republic of Korea in education, science and technology as a way of assisting the economic advancement of less developed countries in line with MDGs. The fund will amount to approximately $4.5 million and the cost-sharing will consist of five annual payments which started in 2010.

See templates for:

• Generic cost-sharing for small contributions

• Third-party agreement

• Agreement - foundations
  

• Agreement - private sector and civil society organizations

Parallel financing is an arrangement in which at least two parties join in a common programme but make separately administered contributions. Following a joint programming exercise, both the Special Unit and the donor(s) finance and execute their specific segments separately but with continuous coordination. The specific features of parallel financing associated with the programme approach need to be worked out with donors. This is important both to encourage donor participation and provide acceptable arrangements with regard to the UNDP rules and regulations.

Parallel financing (financial and/or in-kind contribution) can either support SSC projects or the capacity of the Special Unit (e.g., through Junior Professional Officer programme, United Nations Volunteers programme).

See template for Agreement for in kind contribution from private sector

The Special Unit provides management services to the G-77 Perez-Guerrero Trust Fund for South-South Cooperation among Developing Countries (PGTF). The Fund, established in 1983, provides catalytic financial support to cooperative projects carried out by three or more developing-country members of the G-77.

The Governments of India, Brazil and South Africa established the IBSA Facility for Poverty and Hunger Alleviation in 2003, with the Special Unit providing management support.  The IBSA Fund intends to support the most vulnerable segments of the population of Southern countries through community development, utilizing funds and expertise of the three countries. Contributions to the IBSA Fund amounted to $14.7 million (2004-2010). To date, Burundi, Cambodia, Cape Verde, Guinea-Bissau, Haiti, Lao People’s Democratic Republic and Palestine have benefited from the support under the Fund.

The provision of management services should not be seen as an instrument for mobilizing additional resources. While the modality serves to amplify and reinforce support provided by UNDP and often strengthen its role, it does not per se constitute a mechanism for augmenting the UNDP resource base. Funds pertaining to management services are accounted for separately by UNDP and are not treated as UNDP resources. Management agreements are appropriate for donors who want to maintain accountability separate from government administration and seek a "contractor" to help to implement part or all of the donor's project requirements and/or administrative and logistical services. In most instances, management support agreements are limited to the procurement of goods and services; however, there are instances when the service is broadened to cover project management.